The proposal includes a ban on Stablecoin backed by other cryptocurrencies and directs research into central bank digital currencies (CBDCs).
Members of the US House of Representatives are working to develop a regulatory framework that comprehensively governs Stablecoin such as USDC and USDT, digital assets created for use in payments with a stable value based on a currency. dollars.
📷BREAKING- US House Committee Publishes Draft # Stablecoin Bill 📷📷
— LAXMAN (TBV) (@Theblockvlog) April 16, 2023
Where you keep your funds if you don't have option for stable coins ? pic.twitter.com/7M4tuqx79q
On April 15, the House Financial Services Committee released a landmark new bill , without formal notice, possibly in preparation for a hearing this Wednesday, by the newly formed committee, which specializes in digital assets and financial technology.
However, we cannot XEM the new bill as the final version because debates and negotiations are still going on in Washington in the near future. Differences between political parties have brought negotiations to a dead end in the past, but they have now been restored.
Here are notable highlights about the bill:
- Assign the Federal Reserve to be in charge of non-bank Stablecoin
Non-bank companies like Circle and Tether that are or want to issue Stablecoin in the US, will have to be approved and regulated by the US Central Bank.
Similarly, credit unions and banks must obtain approval from the governing financial regulator, including the National Credit Union Administration (NCUA), the National Deposit Insurance Corporation (NCUA), and the National Deposit Insurance Corporation. (FDIC) or the Office of the Comptroller of the Currency (OCC).
If violated, organizations can be fined up to 5 years in prison and 1 million USD. Above all, any issuer wishing to operate in the United States, regardless of location, must apply for a license.
- Temporary ban on new Stablecoin not collateralized by fiat
The new draft law proposes a two-year ban on Stablecoin that are not backed by real assets such as fiat. The House of Representatives also directed the Treasury Department to conduct further research on the topic. Tokens that existed before the bill was passed will be exempt from the ban.
- Allows the government to set the standard of Stablecoin interoperability
Banking regulators, the National Institute of Standards and Technology will have the power to set standards for interoperability between Stablecoin, including required technical and regulatory specifications, making it possible for users to make payments and transactions. translate across multiple systems without buying multiple Stablecoin .
- Directing the Fed to study CBDC
The new bill requires the Federal Reserve to study the impact of Central Bank-issued digital dollars (CBDCs).
Accordingly, the Fed needs to report on the potential impact of CBDCs on monetary policy, financial stability, and individual privacy. Although the Fed has already begun exploring CBDCs, the bill requires them to focus on the issues that matter most.
Meanwhile, Fed leaders have recently had mixed views on the issuance of CBDCs. The agency is about to launch its FedNow payments system in July, with the goal of providing faster payments similar to CBDCs. However, instead of using the Central Bank's financial infrastructure to make digital payments, the FedNow system chose to integrate with more traditional financial infrastructure.
Last September, there were also leaks about the draft for the Stablecoin regulation law being developed by the United States. But compared to the latest proposal mentioned above, they are quite similar.
- Details: Draft US Stablecoin management law bans Algorithmic Stablecoin LUNA-UST
As Cointelegraph reported, in the US, many other draft crypto regulations are still under discussion in the US, following the executive order calling for regulation of the crypto industry issued by President Biden last year. Most notable are the bills to regulate the entire crypto industry , manage Stablecoin and give crypto custody to the CFTC …
Synthetic Coin68
Maybe you are interested:
